$249 Million Worth of Bitcoin Positions Liquidated After Price Drop

user avatar

by Giorgi Kostiuk

2 years ago

Over the past 24 hours, the cryptocurrency market witnessed a significant drop, leading to $249 million worth of long positions being liquidated due to the rise in the 10-year U.S. Treasury yield.

Reason Behind the Crash

Bitcoin's sharp price decline followed an increase in the 10-year U.S. Treasury yield. The Institute for Supply Management (ISM) released its latest report indicating a rise in the December Purchasing Managers' Index, sparking inflation concerns.

Market Reaction

In response to this data, U.S. equity markets also experienced a substantial drop. The Nasdaq-100 index fell by 1.3% and the S&P 500 slipped by 0.57%. Shares of MicroStrategy, the largest corporate holder of Bitcoin, dropped nearly 9% on Tuesday.

Experts' Position

Although the ISM services index is concerning for risk assets, Oliver Allen of Pantheon Macroeconomics believes that these data might not indicate a persistent inflation trend.

"The index is pretty volatile and often swings up and down without this ever showing up in the inflation numbers. We had a similar scare last January that ended up being a big fat nothing,"Oliver Allen

Markets continue to experience turmoil due to inflation concerns causing sharp fluctuations in cryptocurrency and stock prices. While recent economic data are alarming, experts caution against drawing definitive conclusions too soon.

Tier I

Sector: #18291

Sealed Cache Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, caches will be stored in your inventory and can be opened with Keys.

Other news

Analysts Remain Bullish on SpaceX Stock Despite Recent Challenges

chest

Despite recent challenges, analysts maintain a bullish outlook on SpaceX stock, citing its unique positioning in the market.

user avatarDavid Robinson

SpaceX Stock Faces Volatility Amid Lockup Expirations

chest

SpaceX stock has experienced significant fluctuations due to recent lockup expirations, with investors questioning its future performance.

user avatarAndrew Smith

Meta's Valuation Advantage Over SpaceX

chest

Despite SpaceX's rapid growth, Meta has a more favorable stock valuation, trading at about 66 times sales compared to SpaceX's 45 times sales.

user avatarZainab Kamara

SpaceX Outpaces Meta in Revenue Growth

chest

SpaceX's revenue grew by 92% year-over-year, while Meta's revenue increased by 28%. SpaceX's growth is driven by demand for AI and connectivity, whereas Meta's growth is slower but consistent.

user avatarJacob Williams

SpaceX and Meta Compete for $2 Trillion Valuation

chest

SpaceX and Meta are competing for a $2 trillion market valuation, with SpaceX having briefly reached this mark in June.

user avatarSon Min-ho

SanDisk's Impressive Stock Performance Post Spin-off

chest

SanDisk has experienced a remarkable stock increase of almost 3,900% since its spin-off from Western Digital, driven by high demand for NAND flash memory, with analysts suggesting over 50% upside from current levels.

user avatarAyman Ben Youssef

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.